United Capital’s profit after tax gains 41% to N4.44bn in H1 2022

BY Onome Amuge.

United Capital Plc has announced a profit after tax of N4.44 billion for the half year ended 30 June, 2022, a 41 percent growth compared to N3.14 billion recorded in the corresponding period of 2021.

The Nigeria-based financial and investment services company, in its unaudited financial statement, said its gross earnings rose 33 percent to N9.11 billion, from N6.85 billion in the first half of 2021, while profit before tax stood at N5.24 billion in the first half of 2022, compared to N3.74 billion in H1 2021, accounting for 40 percent growth year-on-year.

During the period under review, the company’s net operating income stood at N8.11 billion, a 19 percent year-on-year growth compared to N6.81 billion recorded in HY 2021.

United Capital also recorded an increase in its operating expenses which was up 30 percent at N4.06 billion in H1 2022, compared to N3.11 billion posted in the corresponding period of 2021, while total liabilities stood at N505.27 billion, a 19 percent year-to-date increase compared to N423.05 billion recorded in December 2021.

The company further stated that its cost-to-income ratio declined by 0.85 percentage points to 44.58 percent from 45.43 percent in H1 2021. This, it explained, was largely driven by 33 percent growth in revenue against a 31 percent growth in operating expenses and a 31 percent growth in other operating expenses. United Capital also disclosed a 55 percent increase in personnel expenses and 14 percent increase in impairment allowance.

Meanwhile, the company said its total assets grew by 17 percent year-to-date from 453.60 billion in the 2021 fiscal year to 531.79 billion in H1 2022, underpinned by 318 percent growth in cash and cash equivalents.

Commenting on the unaudited financial results, Peter Ashade, the group chief executive officer, noted that the company is in a stable growth phase amid the challenging operating terrain in 2022.

He added that the company expects to navigate the undulating business landscape in the remaining half of the year towards increasing value delivery to all stakeholders.

In his assessment on the company’s performance and prospects in the second half of 2022, Ashade said going into H2, the company sees vistas of emerging business opportunities within its operating environment and that it would be collaborating with diverse business leaders and stakeholders across critical economic sectors to deliver new solutions and grow all its businesses in line with its corporate strategy.

“Our impressive H1-2022 result as witnessed in our earnings growth, among other parameters, reinforces our strong start to the year 2022. This uniquely positions the organisation to increasingly deliver shared prosperity to all stakeholders,” Ashade said.